The keys to the agreement between the Government and carriers

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The agreement reached in the early hours of this Friday between the Government and the road freight carriers lowers the price of fuel by 20 cents per liter and promises to apply the principles of the law of the food chain to the sector to ensure the profitability of its work, among other measures. This measure will be valid for three months, that is, until June 30.

The sector will have total endowment of 1,125 million euros to offset the increase in fuel prices, according to calculations by the National Committee for Road Transport (CNTC).

The agreement has been reached in a meeting of more than 14 hours between the CNTC and, on behalf of the Government, the First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño; the Minister of Finance and Public Function, María Jesús Montero, and the Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez.

Both parties trust that this agreement calm the spirits of the thousands of small carriers that they have been on indefinite unemployment for almost two weeks and that today they are demonstrating before the Ministry of Transport asking for a meeting with the minister, as they are not represented by the CNTC. This meeting, according to the minister, will take place this Friday afternoon.

The Minister of Transport will meet this afternoon with the organizers of the strikes

What was agreed this morning will be reflected in the package of measures that the Government plans to approve the next day 29 of March to offset the impact on the Spanish economy of the invasion of Ukraine and complements the measures included in the Royal Decree Law approved on March 1.

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Then, the prohibition that the driver must load and unload the merchandise was approved, the reduction of waiting times without charging for it from two hours to one or the mandatory clause of price revision based on the evolution of the cost of fuel.

The agreements reached are the following:

The driver will receive at least 20 cents per liter or kilo of fuel

Minimum bonus of 20 cents per liter -or kilogram in the case of compressed gas – fuel. It is broken down into 15 cents from the public budget and a minimum of 5 cents from the oil companies. This will mean a total of 665 million euros.

It will apply to diesel oil, gasoline, gas and the AdBlue additiveso that, as an example, a diesel truck would save more than 700 euros per monthplus another 70 euros for AdBlue.

Aid to companies differentiated by type of vehicle

aids of €1,250 per truck, 950 euros per bus, 500 euros per van and 300 euros per light vehicle (taxis, VTC and ambulances), with a limit of 400,000 euros per company. It will add 450 million euros for freight and passenger transport companies depending on the type of vehicle.

New lines of credit and application of the Food Chain Law

Increase in the budget for aid for abandoning the carrier profession, which it will go from 10 to 20 million euros in 2022. These aids, of an average of 30,000 euros per person, compensate for early retirement in a very physically demanding profession.

Application of the Law of Food chain to the transport sector with the objective of ensure a fair use of subcontracting and the profitability of their work. The Ministry of Transport will present before July 31 to the CNTC a text of the bill, for its subsequent approval in the Council of Ministers, to apply this law to the road freight transport sector.

Monthly returns of professional diesel

Monthly refund of professional diesel, instead of quarterly, as it is currently. A monthly advance refund will be made, based on a calculation of the expense, which will then be regularized annually. This was a historical claim of the sector. Carriers will be rewarded with 0.05 cents of the price of diesel, with a limit of 50,000 euros per year. This amount will now be returned monthly.

According to CNTC calculations, a truck travels an average of 10,000 kilometers per month, spending around 3,500 litres, so this bonus represents an average of 170 euros per month per vehicle. For an average company, with four trucks, the monthly reduction is 680 euros.

In addition, it will speed up reimbursement of the health cent, a tax that was levied on retail sales of hydrocarbons and was intended to finance health spending, which later became the so-called special rate. This was agreed upon years ago, but was still pending.

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Specifically, the monthly payment of professional fuel will take place from April and a monthly early return system with annual regularization will be launched.

In total, a truck will save 3,560 euros on average

The sum of all the aids supposes that a truck will save an average of 3,560 euros in the three months of the agreement: 700 euros per month for fuel (2,100 euros until June), 70 euros more for AdBlue (210 euros total) and 1,250 euros for direct aid, according to CNTC calculations.

For one medium van, the aid amounts to 830 euros in those three months: 100 euros per month for the aid in the purchase of fuel, 10 euros for the additive and 500 euros for direct aid.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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